WOULD YOU LIKE TO ENTER FIRST WITH A LOW‐QUALITY GOOD?

Luca Lambertini () and Piero Tedeschi ()

Bulletin of Economic Research, 2007, vol. 59, issue 3, 269-282

Abstract: Using a two‐period duopoly model with vertical differentiation, we show that there exists a unique subgame perfect equilibrium where the first entrant supplies a lower quality and gains higher profits than the second entrant. We also prove that this entry sequence is socially efficient.

Date: 2007
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https://doi.org/10.1111/j.0307-3378.2007.00262.x

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Working Paper: Would you like to enter first with a low-quality good? (2003)
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